Income Tax Act

If, in any year, a Resident has paid insurance premiums or installments for the portion relating to earthquake or similar damage (excluding those prescribed by Cabinet Order; referred to as "earthquake insurance premiums" in this paragraph) under a casualty insurance policy or similar contract whose subject matter of insurance or mutual aid is a house owned by the Resident or by the Resident's spouse or any other relative whose living expenses are paid from the same resources as the Resident and constantly used as their residence, or assets prescribed in Article 9, paragraph (1), item (ix) (Nontaxable Income) owned by those persons, and under which insurance proceeds or mutual aid benefits are paid to cover the amount of loss incurred with respect to those assets due to damage from fire, destruction, burial or washing away directly or indirectly caused by an earthquake, a volcanic eruption, or a tsunami resulting from either of these (referred to as "earthquake or similar damage" in this paragraph), the total amount of earthquake insurance premiums paid during the year (or, if in that year the Resident has received a distribution of surplus or a refund of rebates under the casualty insurance policy or similar contract, or has appropriated surplus to be distributed or rebates to be refunded under the casualty insurance policy or similar contract to the payment of earthquake insurance premiums, the balance remaining after deducting the amount of that surplus or those rebates (limited to the amount of the portion relating to earthquake insurance premiums), and if that amount exceeds 50,000 yen, 50,000 yen) is allowed as a deduction from the Resident's gross income, retirement income or timber income for the year.

The casualty insurance policy or similar contract prescribed in the preceding paragraph means a contract that is concluded as a supplement to one of the following contracts, or a single insurance policy or mutual aid contract that becomes valid together with such a contract:

an insurance policy concluded by a casualty insurance company prescribed in Article 2, paragraph (4) (Definitions) of the Insurance Business Act or a foreign casualty insurance company, etc. prescribed in paragraph (9) of that Article, which is designed to cover damage arising from certain types of unavoidable accidents (other than one set forth in paragraph (6), item (iv) of the preceding Article and other than one that such a foreign casualty insurance company, etc. has concluded outside Japan);

a contract for mutual aid in building renovation or mutual aid for fire damage concluded by an agricultural cooperative engaged in business referred to in Article 10, paragraph (1), item (x) (Facilities for Mutual Aid) of the Agricultural Cooperatives Act, or any other contract for similar mutual aid prescribed by Cabinet Order.

A deduction under paragraph (1) is referred to as an earthquake insurance premium deduction.

If, in any year, a Resident makes a specified donation and the amount set forth in item (i) exceeds the amount set forth in item (ii), the amount by which the former exceeds the latter is allowed as a deduction from the Resident's gross income, retirement income or timber income for the year:

the sum total of specified donations made during the year (or an amount that represents 40% of the sum total of the Resident's gross income, retirement income, and timber income for the year, if the sum total of specified donations made during the year exceeds this);

2,000 yen.

A specified donation as prescribed in the preceding paragraph means a donation as follows (other than one made in connection with school enrollment):

a donation to the national or local government (including a port authority prescribed in the Ports and Harbors Act (Act No. 218 of 1950)) (excluding any donation in connection with which the donor is found to be extended exclusive use of the facilities funded by the donation or any other special benefit);

a donation to an incorporated public interest association, incorporated public interest foundation, or any other corporation or group that conducts business in the public interest (including a donation to incorporate the corporation or any other donation made prior to the incorporation thereof which is prescribed by Cabinet Order) which the Minister of Finance designates pursuant to Cabinet Order as meeting the following requirements:

donations are solicited widely from the general public;

it is fully expected that the donation will be allocated to urgent expenses to help advance education or science, improve culture, contribute to social welfare, or otherwise further the public interest.

a donation to a corporation as set forth in Appended Table I, or to a corporation incorporated pursuant to a special Act, which Cabinet Order prescribes as one that significantly helps advance education or science, improve culture, contribute to social welfare, or otherwise further the public interest, made in connection with the business that is the principal objective of that corporation (other than a donation that is clearly to be allocated to business related to capital contributions and a donation that falls under a category of donation prescribed in one of the preceding two items);

a donation related to the trust affairs of a public interest trust that is expended to make it trust property of that public interest trust (other than a donation that is clearly to be allocated to trust affairs related to capital contributions and a donation that falls under a category of donation prescribed in one of the preceding three items).

A deduction under paragraph (1) is referred to as a donation deduction.

If a Resident is a Person with a Disability, the Resident is allowed 270,000 yen (or 400,000 yen, if the Resident is a Person with a Particular Disability) as a deduction from gross income, retirement income, or timber income for the year.

If a Resident's spouse in the same household or dependent is a Person with a Disability, the Resident is allowed 270,000 yen (or 400,000 yen, if that person is a Person with a Particular Disability) for each such Person with a Disability as a deduction from the Resident's gross income, retirement income, or timber income for the year.

If a Resident's spouse in the same household or dependent is a Person with a Particular Disability who ordinarily lives together with the Resident, the Resident's spouse, or any other relative whose living expenses are paid from the same resources as the Resident, the Resident is allowed 750,000 yen for each such Person with a Particular Disability as a deduction from the Resident's gross income, retirement income, or timber income for the year, notwithstanding the provisions of the preceding paragraph.

A deduction under the preceding three paragraphs is referred to as a disability deduction.

If a Resident is a widow, the Resident is allowed 270,000 yen as a deduction from gross income, retirement income, or timber income for the year.

A deduction under the preceding paragraph is referred to as a widow deduction.

If a Resident is a single parent, the Resident is allowed 350,000 yen as a deduction from gross income, retirement income, or timber income for the year.

A deduction under the preceding paragraph is referred to as a single parent deduction.

If a Resident is a working student, the Resident is allowed 270,000 yen as a deduction from gross income, retirement income, or timber income for the year.

A deduction under the preceding paragraph is referred to as a working student deduction.

If a Resident has a Claimable Spouse, the amount specified in each of the following items for the category of case set forth in that item is allowed as a deduction from the Resident's gross income, retirement income, or timber income for the year:

if the Resident's total income prescribed in Article 2, paragraph (1), item (xxx) (Definitions) (referred to as "total income" in this paragraph, paragraph (1) of the following Article, Article 84-2, paragraph (1) (Special Deduction for Specified Relatives), and Article 86, paragraph (1) (Basic Personal Exemption)) is 9,000,000 yen or less: 380,000 yen (or 480,000 yen, if the Claimable Spouse is a Claimable Elderly Spouse);

if the Resident's total income exceeds 9,000,000 yen but does not exceed 9,500,000 yen: 260,000 yen (or 320,000 yen, if the Claimable Spouse is a Claimable Elderly Spouse);

if the Resident's total income exceeds 9,500,000 yen but does not exceed 10,000,000 yen: 130,000 yen (or 160,000 yen, if the Claimable Spouse is a Claimable Elderly Spouse).

A deduction under the preceding paragraph is referred to as a spousal deduction.

If a Resident has a spouse whose living expenses are paid from the same resources as the Resident (excluding a relative employed only by a blue-return filer or similar person prescribed in Article 2, paragraph (1), item (xxxiii) (Definitions), and limited to a spouse whose total income is 1,330,000 yen or less) who does not fall under the category of Claimable Spouse (limited to the spouse of that Resident whose total income is 10,000,000 yen or less), the amount specified in each of the following items for the category of case set forth in that item is allowed as a deduction from the Resident's gross income, retirement income, or timber income for the year:

if the Resident's total income is 9,000,000 yen or less: the amount specified in the following for the category set forth therein to which the Resident's spouse belongs:

a spouse whose total income is 950,000 yen or less: 380,000 yen;

a spouse whose total income exceeds 950,000 yen but does not exceed 1,300,000 yen: the amount obtained by deducting from 380,000 yen the amount of the portion of the spouse's total income that exceeds 930,001 yen (or, if the amount of that excess portion is not an amount obtained by deducting 30,000 yen from a whole-number multiple of 50,000 yen, the largest of the amounts obtained by deducting 30,000 yen from a whole-number multiple of 50,000 yen that are less than the amount of that excess portion);

a spouse whose total income exceeds 1,300,000 yen: 30,000 yen.

if the Resident's total income exceeds 9,000,000 yen but does not exceed 9,500,000 yen: an amount equivalent to two-thirds of the amount specified in (a) through (c) of the preceding item for the category set forth in (a) through (c) of that item to which the Resident's spouse belongs (or, if that amount includes a fraction of less than 10,000 yen, the amount obtained by rounding that fraction up);

if the Resident's total income exceeds 9,500,000 yen but does not exceed 10,000,000 yen: an amount equivalent to one-third of the amount specified in item (i), (a) through (c) for the category set forth in (a) through (c) of that item to which the Resident's spouse belongs (or, if that amount includes a fraction of less than 10,000 yen, the amount obtained by rounding that fraction up).

The provisions of the preceding paragraph do not apply if the spouse whose living expenses are paid from the same resources as the Resident prescribed in that paragraph falls under any of the following cases:

if the spouse is subject to the application of the provisions of the preceding paragraph as a Resident prescribed in that paragraph;

if the spouse is subject to the application of the provisions of Article 185, paragraph (1), item (i) or (ii) (Amount Withheld from a Salary or Other Wage Other Than a Bonus) or Article 186, paragraph (1), item (i) or paragraph (2), item (i) (Amount Withheld from Bonuses) as a Resident who has a spouse for withholding deduction stated in a salary income earner's return for deduction for Dependents, etc. or in a return for deduction for Dependents, etc. regarding secondary salaries (excluding the case where the spouse is a person to whom the provisions of Article 190 (Year-End Adjustment) have been applied, or a person who has filed a Tax Return or has received a determination, with respect to income tax for the year);

if the spouse is subject to the application of the provisions of Article 203-3, items (i) through (iii) (Amount of Tax to Be Collected) as a Resident who has a spouse for withholding deduction stated in a return for Dependents, etc. of a recipient of a public pension or retirement package (excluding the case where the spouse is a person who has filed a Tax Return or has received a determination with respect to income tax for the year).

A deduction under paragraph (1) is referred to as a special spousal deduction.